29 Oct Life Insurance Cover – What's Included
Each life insurance policy will differ slightly, but term life and whole life insurance are quite different products.
Life insurance policies differ in what they contain, although most have the same core features. However two very different life insurance policies are term life insurance and whole life insurance. With the former you pay a fixed smaller premium, but there is no saving component so you cannot cash out at any stage. It is for a fixed term and if you die after that term there will be no pay out.
This problem can be taken care of by choosing a very long term. However, while term life has the cheapest premiums, if you default on one month of payments it will end you will lose all benefits and the money you have paid so far. There is usually a grace period of 30 days, so if you pay your monthly premium within this time everything will still be okay.
With whole life insurance there is a savings component so that if you take it out when you are young, you can cash it at some later stage to pay for an expense that you might have. Of course, if you do cash it out there will be no further payment upon your demise. The premiums for a whole life policy are more expensive and may increase over time.
Whole life insurance may also include other features such as illness and accident insurance. Often if you bundle insurance to include these other components you get it for a cheaper rate than taking them out separately.
No matter what kind of life insurance you decide on it is always wise to make life insurance comparisons. You can do this easily by looking up life insurance online and using a life insurance calculator. You life insurance comparison will show you which products offer the best deal and what kinds of features or benefits they contain. But be sure you compare apples with apples – that is, you wouldn’t want to compare term life insurance with whole life insurance.